Hamrick v. Commissioner
United States Tax Court
Petitioner James C. Hamrick and another invented a device, applied for a patent, and, with others providing capital, formed a corporation to market the invention.
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Petitioner James C. Hamrick and another invented a device, applied for a patent, and, with others providing capital, formed a corporation to market the invention. The two inventors assigned the invention to the corporation, receiving as consideration more than one-half of the issued stock plus the right to receive additional shares if the earnings for a year exceeded 10 percent of the outstanding stock, until the stock received by them amounted to two-thirds of the total shares issued. One inventor withdrew and assigned his stock and rights to another stockholder for cash. The stockholders…
1Opinion of the Court
Bettce, Judge:
The respondent determined deficiencies in income tax for the calendar years 1958, 1959, and 1960 in the amounts of $653.76, $7,257.32, and $90,518.08, respectively.
The principal issue for decision is whether certain shares of stock in a corporation received by James C. Hamrick in the taxable years constituted nontaxable income within the provisions of section 351 of the Internal Eevenue Code of 1954 or capital gains pursuant to section 1235 of the Code, as to some of such shares, and ordinary income as to other shares. If the shares are taxable, there is a further issue…
2Cases cited11 opinions
- Helvering v. Southwest Consolidated Corp.Supreme Court of the United States · 1942
- American Bantam Car Co. v. CommissionerUnited States Tax Court · 1948
- Ruge v. Comm'rUnited States Tax Court · 1956
- Aspinwall, Manuf'g Co. v. GillUnited States Circuit Court · 1887
- Blum v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1950
6 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Walter F. Vorbleski and Florence Vorbleski v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1978
- Catterall v. CommissionerUnited States Tax Court · 1977
- Irving Gordon and Margaret Gordon v. Cmmissioner of Intenal RevenueCourt of Appeals for the Second Circuit · 1970
- Jeffers v. United StatesUnited States Court of Claims · 1977
- Sidney R. Solomon and Beatrice Solomon v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1977
16 more not listed; retrieve them via the Exa API.